Atharva Polyplast IPO

About this issue

Atharva Polyplast listed at +15.0% against its issue price of ₹60. The book is 7.54 times subscribed overall. The grey market premium is +₹10 (+16.7%), which is an informal figure and not a quoted price. Our call is Risky, on 67% of our checks.

Segment

SME

Price

₹60

Lot size

2,000 shares

One lot costs

₹1,20,000

Issue size

₹26 Cr

Grey market premium

+₹10 (+16.7%)

Subscribed

7.54x

Listed at

+15.0%

Our call

Risky

What we checked

• Profitable in the latest yearPAT ₹4.73 Cr
• Profit grew year on yearPAT -11%
• Revenue grew year on yearRevenue -11%
• Margin not collapsingPAT margin 11.1% vs 11.1%
• Borrowing under half of net worthDebt/net worth 0.57
• Return on net worth above 15%RoNW 40.6%
• Post-issue P/E under 40P/E 17.8
• Price to book under 6P/B 5.7
• Majority is fresh capital100% fresh issue
• Promoters keep at least half73.3% held post-issue
• Anchor investors participatedAnchor book placed
• Overall book more than 10× covered7.5× overall
• Lead manager above segment medianHorizon Management Pvt.Ltd.: 26 past issues, +14% avg vs +8% segment median

2 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.